Merchant Cash Advance UK

A merchant cash advance is a business loan alternative, where you can borrow against your monthly card takings. The lender “purchases” a percentage of your future card takings until the cash advance (plus any costs) are repaid.

It is also referred to as a Business Cash Advance or a Merchant Loan. 

Businesses such as retail shops, pubs and restaurants can get quick access to funding, even if they have been declined elsewhere.

It can be used for a wide range of legitimate business purposes. To help grow your business, buy new equipment or to support cash flow. This could include but not limited to the following reasons:

• Stock
• Refit
• Fund an order
• Cashflow
• VAT or Tax Bill
• Marketing Campaign
• Office Equipment
• Expansion

This really depends on a number of factors such as your businesses credit rating, sector, turnover and other information. It is usually based on a factor rate, so this means a fixed cost of every pound borrowed.

Merchants typically pay an additional 8 – 35p for every £1 advanced.

e.g. Factor Rate 1.3, for every £1000 you borrow you repay £1300.

Please get in touch with us today and we can speak with a number of lenders to get you a quote.

It is only possible to have one split set up on a merchant’s bank account at a time. If you have more than one card provider or receive income from JustEat, Deliveroo or UberEats, then it may be possible to have another.

A UK business can apply for a Merchant Advance loan if you have been trading for 6 months and have card turnover above £2500 per month.

You do not need to be a homeowner and could still be accepted with a low credit score.

You can repay a cash advance early but you do not save any money in doing this as the fixed fee agreed in advance remains the same. Therefore by repaying early, you will still need to repay the agreed fixed amount (minus any repayments already made).

If you already have a cash advance in place you may be able to renew or refinance once 50% has been repaid.

Yes sole traders and partnerships can apply for this type of funding. We can help all legal entities; Sole Traders, Partnerships and Limited companies.

A Merchant Cash Advance provides access to business finance on a short term basis and are usually repaid within 6-12 months. It could give access to funding, when you are not able to get other types of business funding and have been declined.

However it may be more expensive than an alternative, like a business loan.

We cannot give financial advice, therefore you will need to access if the benefit is worth the cost of borrowing.